Brazil’s Hotspots Attracting Investors from Northern Europe

Property in some areas of Brazil are experiencing price rises of over 20% per year, according to a recent report in ‘The Independent’. This comes largely as a result of the exposure the country received from a promotional campaign launched by the Brazilian Government in 2003, intended to boost the country’s tourism.

The Government invested in its coastal resorts and the development of its infrastructure, focusing on the areas with greatest tourism potential, intending to boost the country’s weak economy through a strong tourism industry. The resulting increase in tourism numbers had the additional effect of opening the country up to a new market of property buyers, attracted to Brazil’s natural scenery, low costs of living and party atmosphere. Properties prices were low, and since the influx of overseas buyers they have doubled or more in value.

The area of Natal, on the north-eastern coast of Brazil, has proved to be one of the most popular with overseas investors. Prices have risen by over 20% in the last year, which is higher than the price rises experienced in the rest of the country. Northern Europeans in particular are drawn to the area for its sunny climate as well as its accessible real estate market. There is also domestic interest in the area; many of the more affluent Brazilian residents are moving here from the traditionally popular areas along the south coast, such as Sao Paulo, attracted by comparatively lower crime levels and living costs.

Of the British people who are buying in Brazil, most are seeking a property for longer breaks rather than the shorter holidays that a European property can offer; the flight from the UK to Brazil takes approximately eight hours longer than flying from the UK to Spain.